Vermont § 4763b - Loans to individuals for failed wastewater systems and failed potable water supplies

§ 4763b. Loans to individuals for failed wastewater systems and failed potable water supplies

• (a) Notwithstanding any other provision of law to the contrary, when the wastewater system
  or potable water supply serving only single-family and multifamily residences either
  meets the definition of a failed supply or system in 10 V.S.A. § 1972 or is demonstrated by a designer to have a high probability of failing, the Secretary
  of Natural Resources may lend monies to an owner of one or more of the residences
  from the Vermont Wastewater and Potable Water Revolving Loan Fund established in section 4753 of this title. In such cases, the following conditions shall apply: (1) a loan may only be made to an owner with a household income equal to or less than
  200 percent of the State average median household income; (2) a loan may only be made to an owner who resides in one of the residences served by
  the failed supply or system on a year-round basis; (3) [Repealed.] (4) when the failed supply or system also serves residences owned by persons other than
  the loan applicant, a loan may only be made for an equitable share of the cost to
  repair or replace the failed supply or system that is determined through agreement
  of all of the owners of residences served by the failed system or supply; (5) no construction loan shall be made to an individual under this subsection, nor shall
  any part of any revolving loan made under this subsection be expended, until all of
  the following take place: (A) the Secretary of Natural Resources determines that if a wastewater system and potable
  water supply permit is necessary for the design and construction of the project to
  be financed by the loan, the permit has been issued to the owner of the failed system
  or supply; and (B) the individual applying for the loan certifies to the Secretary of Natural Resources
  that the proposed project has secured all State and federal permits, licenses, and
  approvals necessary to construct and operate the project to be financed by the loan; (6) all funds from the repayment of loans made under this section shall be deposited into
  the Vermont Wastewater and Potable Water Revolving Loan Fund. (b) Notwithstanding any other provision of law to the contrary, when the wastewater system
  serving only single-family and multifamily residences either meets the definition
  of a failed system in 10 V.S.A. § 1972 or is demonstrated by a designer to have a high probability of failing, the Secretary
  of Natural Resources may lend monies to an owner of one or more of the residences
  from the Vermont Wastewater and Potable Water Revolving Loan Fund and capitalized
  by money that has been transferred from the Vermont Environmental Protection Agency
  (EPA) Pollution Control Revolving Fund pursuant to subdivision 4753(a)(10) of this title, provided that no State funds are used. In such cases, all of the following conditions
  shall apply: (1) A loan may only be made to an owner with a household income equal to or less than
  200 percent of the State average median household income. (2) A loan may only be made to an owner who resides in one of the residences served by
  the failed system on a year-round basis. (3) A loan may only be made to an owner who demonstrates sufficient means to pay the principal
  and interest on the loan. (4) A loan may only be made for a project that is a clean water project the Secretary
  has designated as a priority for receipt of financial assistance. (5) When the failed system also serves residences owned by persons other than the loan
  applicant, a loan may only be made for an equitable share of the cost to repair or
  replace the failed system that is determined through agreement of all of the owners
  of residences served by the failed system. (6) No construction loan shall be made to an individual under this subsection, nor shall
  any part of any revolving loan made under this subsection be expended, until all of
  the following take place: (A) the Secretary of Natural Resources determines that if a wastewater system and potable
  water supply permit is necessary for the design and construction of the project to
  be financed by the loan, the permit has been issued to the owner of the failed system;
  and (B) the individual applying for the loan certifies to the Secretary of Natural Resources
  that the proposed project has secured all State and federal permits, licenses, and
  approvals necessary to construct and operate the project to be financed by the loan. (7) Loans shall be awarded at or below market interest rates. (8) All funds from the repayment of loans made under this subsection shall be deposited
  into the Vermont Environmental Protection Agency (EPA) Pollution Control Revolving
  Fund. (c) Loans awarded under this section: (1) shall include a loan repayment schedule that commences not later than one year after
  completion of the funded project for which loan funds have been issued; and (2) shall not be used for the operation and maintenance expenses, or laboratory fees for
  monitoring, of a wastewater system or potable water supply. (d) The Secretary of Natural Resources shall establish standards, policies, and procedures
  as necessary for the implementation of this section. The Secretary may establish criteria
  to extend the payment period of a loan or to waive all or a portion of the loan amount. (Added 2011, No. 161 (Adj. Sess.), § 14; amended 2013, No. 51, § 42, eff. May 29, 2013; 2017, No. 168 (Adj. Sess.), § 22, eff. May 22, 2018; 2017, No. 197 (Adj. Sess.), § 21; 2023, No. 79, § 6, eff. July 1, 2023.)